UAE Car Rental Market Future Outlook: Ken Research

UAE Car Rental, Leasing, and Limousine are highly influenced by the tourists’ influx and corporate offices. The car rental fleet was also observed to grow with a positive CAGR over the last 5 years. The car rental and leasing industry have started to gain momentum with the new government initiatives leading to a transformation for the companies to switch to a Technology-based platform and adopting new customer-oriented services. The Rental companies are having a market size of ~ Thousands as per 2019 has been growing with a positive CAGR. Car Rental services can be booked from the Airport as well as outside UAE. Tourists prefer booking it from the airport to reduce the cost of renting and traveling to the Emirates. UAE has a growing number of tourists and hence it leads to a growing demand for rental services. The corporate offices also rent cars for their corporate uses and clients.

Rental services are in strong demand during annual events and festivals such as the Dubai shopping festival. With new events lined up in Dubai and Abu Dhabi, rental services are anticipated to increase. UAE was witnessed to have the majority of car rental companies in Dubai and Abu Dhabi. Currently, the market is concentrated with rental companies with a mix of foreign players such as hertz rent a car, Thrifty, Europcar, Budget rent a car, Lease Plan, and local players such as emirates transport, Diamond Lease and others.

The Government is pushing the rental companies to adopt sustainability in the fleet and replace the gasoline vehicles to electric and hybrid vehicles in the UAE. Few companies in the UAE have already started maintaining an electric fleet of cars such as Toyota and Tesla and whereas others are still adopting the change.

UAE Car Rental Market Segmentation

By Type of Emirates (Dubai, Abu Dhabi Ajman, Sharjah, Ras Al Khaimah, Fujairah, and Umm Al-Quwain): Dubai has dominated the UAE rental fleet with a market share of ~% during 2019. The Rental services are most prominent at Dubai and Abu Dhabi owing to the concentration of corporate companies and major tourist locations. Dubai and Abu Dhabi are the most populous locations and account for the highest rental bookings.

By Types of Cars (Economy, SUV, and Luxury): Economy cars have dominated the UAE rental fleet with a market share of ~% during 2019. Rental companies focus on decreasing operational cost and prefer having an economical fleet of car brands such as Toyota and Honda as it is more profitable and provides better mileage.

By End users (Individual and Corporate): Individuals has dominated the UAE rental fleet with a market share of ~% during 2019. Individuals prefer renting out vehicles more as compared to corporate and use it for visiting tourist places and for traveling

By Duration (0-1 Month, 1-6 Month, and 6-12 months): Rental services are generally for a very short duration and less than a year. Customers prefer booking it for less than a month.

By Number of Airport Bookings (Airport and Off-Airport): Airport Bookings have dominated the UAE rental fleet with a market share of ~% during 2019. Booking rentals cars right away from Airport provide more accessibility and comfort to the tourists and Corporate Clients for traveling in the UAE.

What Is the Competition Scenario in The UAE Car Rental Market?

Competition within the UAE Car Rental, the market was observed to be highly concentrated along with the presence of both local and global car rental companies. The major companies in the Car Rental and Leasing industry in UAE include Emirates Transport, Hertz, Dollar, Thrifty Car Rental, Massar Solutions, Diamond Lease, Shift Rent a Car, National Car Rental, Budget, Lease plan, and others. Major competing parameters include a number of office locations, Client Information, Car Brands, and Partners, Key services, Vintage, and other factors.

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